Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

land transactions on the statement of cash flow Example Exercise 16-5 Land Transactions on the Statement of Cash Flows Alpha Corporation purchased land for $125,000.

land transactions on the statement of cash flow
image text in transcribed
Example Exercise 16-5 Land Transactions on the Statement of Cash Flows Alpha Corporation purchased land for $125,000. Later in the year, the company sold a different piece of land with a book Obj. 2 value of $165,000 for $200,000. How are the effects of these transactions reported on the statement of cash flows? Follow My Example 16-5 The gain on the sale of the land is deducted from net income, as follows: Gain on sale of land (35,000) The purchase and sale of land are reported as part of cash flows from investing activities, as follows Cash received from sale of land Cash used for purchase of land $200,000 (125,000) Practice Exercises: PE 16-5A, PE 16-5B

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health Auditing As A Tool For Quality Care Case Studies

Authors: Camila Freire

1st Edition

6206344169, 978-6206344162

More Books

Students also viewed these Accounting questions

Question

Explain pacifism and how it is related to deontological concerns.

Answered: 1 week ago